The Patna High Court, while allowing an appeal filed against an order passed by the learned Single Judge, whereby the claim of the writ petitioner-appellant herein for interest over the delayed payment of retiral benefits/dues was not acceded to, held that denial of interest over the delayed payment of due pension and gratuity would cause a miscarriage of justice.
Brief Facts:
The writ petitioner was appointed as an Assistant in the Government of Bihar at Patna. The petitioner superannuated on 31.01.2018 from the post of Under Secretary. The petitioner was not being accorded his due retiral benefits, and so he moved before this Court for payment of all his due retiral benefits including commutation of pension and monthly pension along with interest over the delayed payment. During the pendency of the afore-noted writ petition, the respondent- State officials sanctioned the substantive amount of retiral dues as well as arrears of pension which came to Rs. 62,17,399/-. However, no interest over the due amount was paid. Having found no response, the writ petitioner moved before this Court which came to be disposed of vide order dated 31.08.2023, impugned herein.
Contentions of the Appellant:
The Learned Counsel for the Appellant submitted that the payment was made after a delay of almost five years without there being any justiciable reason and, as such, the respondent-state officials are legally obliged to pay the penal interest on the retiral benefits, paid belatedly.
Contentions of the Respondent:
The Learned Counsel for the Appellant submitted that the delay was caused in making payment of retiral benefits owing to slackness and indolent attitude on the part of the appellant.
Observations of the Court:
The Court noted that the right to receive a pension has been held to be a right to property protected under Article 300A of the Constitution of India.
The Court observed that denial of interest over the delayed payment of due pension and gratuity would cause a miscarriage of justice. The Court reiterated that the pension and gratuity are no longer any bounty to be distributed by the Government to its employees on their retirement but have become valuable rights and property in their hands and any culpable delay in settlement and disbursement thereof must be visited with the penalty of payment of interest at the current market rate till actual payment to the employees.
The decision of the Court:
The Patna High Court, allowing the appeal, held that the impugned order dated 31.08.2023 is set aside. The respondent State is directed to ensure payment of interest @ 6% over the amount, belatedly paid to the petitioner and did not carry any statutory interest, from one month after his superannuation till the actual payment was made.
Case Title: Prasidh Kumar Singh vs The State of Bihar & Ors.
Coram: Hon’ble Justice K. Vinod Charan and Hon’ble Justice Harish Kumar
Case no.: Letters Patent Appeal No.1391 of 2023
Advocate for the Appellant: Mr. Ajit Kumar Singh
Advocate for the Respondents: Mr. Addl. Advocate General
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